Marketing - Answers process by which companies create value for customers and build strong
customer relationships in order to capture value from customers in return
2 goals of marketing - Answers -to attract new customers by promising superior value
- to keep and grow current customers by delivering satisfaction
First step of marketing process - Answers Understand the marketplace and customer needs and
wants
Second step of marketing process - Answers Design a customer value-driven marketing strategy
Third step of marketing process - Answers Construct an integrated marketing program that delivers
superior value
Fourth step of marketing process - Answers Build profitable relationships and create customer delight
Fifth step of marketing process - Answers Capture value from customers to create profits and
customer equity
5 core customer and marketplace concepts - Answers 1) needs, wants and demands
2) market offerings (products, services and experiences)
3) value and satisfaction
4) exchanges and relationships
5) markets
needs - Answers states of felt deprivation
wants - Answers the form human needs take as they are shaped by culture and individual personality
demands - Answers human wants that are backed by buying power
market offerings - Answers some combination of products, services, information or experiences
offered to a market to satisfy a need or want.
Include: Products, services, persons, places, organizations, information, and ideas.
Market myopia - Answers the mistake of paying more attention to the specific products of a company
offers then to the benefits and experiences produced by these products.
Forget that a product is only a tool to solve a consumer product.
Exchange - Answers the act of obtaining a desired object from someone by offering then something
in return.
Market - Answers The set of all actual and potential buyers of a product or service.
Buyers share a particular need or want that can be satisfied through exchange relationships.
marketing management - Answers the art and science of choosing target markets and building
profitable relationships with them.
Marketing manager's aim? - Answers to find, engage, keep and grow target customers by creating,
delivering and communicating superior customer value.
To have successful marketing strategy, manager needs to answer what two questions? - Answers
Whats our target market (what customers will we serve)?
How can we serve these customers best (value proposition)?
Production concept - Answers the idea that consumers will favor products that are available and
highly affordable; therefore, the organization should focus on improving production and distribution
efficiency.
Product concept - Answers the idea that consumers will favor products that offer the most quality,
performance and features; therefore the organization should devote its energy to making continuous
product improvements.
selling concept - Answers The idea that consumers will not buy enough of the firm's products unless
the firm undertakes a large scale selling and promotion effort. Aim is to sell what the company makes
and not make what the market wants.
factory --> existing products --> selling and promoting --> profits through sales volume
marketing concept - Answers a philosophy in which achieving organizational goals depends on
knowing the needs and wants of target markets and delivering the desired satisfactions better than
competitors do.